Africa-Press – Uganda. The Directorate of Criminal Investigations (CID) is investigating Ponzi scheme companies as well as other pyramid schemes that operate with the malicious intention of defrauding Ugandans, further cautioning the general public to stay vigilant.
This comes at a time when the CID is also having an active ongoing investigation around Capital Chicken Limited, accused of defrauding several victims to the tune of Shs5 billion, where victims were allegedly enticed by promises of hefty returns ranging from 40% to 60%, all facilitated through an online investment contract.
In a statement released by the Police Spokesperson, Fred Enanga on the Uganda Police Force’s official website and social media spaces, dated December 11, 2023, “Capital Chicken Limited is facing scrutiny for operating without the requisite licenses for fund management, lacking an investment advisor license, and allegedly obtaining money through false pretences.”
The statement issued a message of caution to the general public, citing some of the companies they are investigating.
“It’s against the above background that we would like to caution the public about other Ponzi companies in the market, some of which are under investigation by CID in coordination with the Capital Markets Authority. These include; Veta plan, Mall Fund, Great Wealth Youth Platform Africa, Cashmulla, Pio Crypto, Premium Clusters, Contract Kapital, and Pacs Capital Limited among others,” the statement read in part.
The CID further emphasizes the recurring pattern observed in these schemes: a change of names upon entry, attractive packages to lure investors, the accumulation of a user base, freezing of accounts, and eventual defrauding of unsuspecting members of the public.
“For instance, under Cashmulla, a user deposits Uganda shillings 17,000, and is encouraged to invite other users and earn a commission from users under them, which is a classic pyramid scheme tactic. The user cannot recover or withdraw their money,” the statement read in part.
SCP Enanga urges the public to exercise caution and conduct thorough due diligence before engaging in any investment opportunities. He advises individuals to only participate in ventures regulated by the Capital Markets Authority or other relevant regulatory bodies. Seeking advice from licensed investment advisors is crucial to avoid falling victim to the pervasive menace of investment fraud.
“We urge the public to always carry out sufficient due diligence and only enroll in investment opportunities regulated by the Capital Markets Authority, or any other relevant regulator. In addition, they should seek investment advice from licensed investment advisors, before making an investment decision and avoid being victims of investment fraud,” the statement read.
Capital Markets Authority through their Communications & Relations Manager, Lyn Tukei, urged the public through this publication to remain vigilant.
“We would like to urge the public to be vigilant and to avoid investing in any scheme that is not licensed or authorized by the CMA. A comprehensive list of approved and licensed persons operating within the Uganda capital markets industry concerning approved public investment opportunities is available on our website (www.cmauganda.co.ug). The Capital Markets Authority remains committed to protecting investors,” said Lyn Tukei.
As investigations progress, authorities remain steadfast in their commitment to bringing those responsible for these fraudulent activities to justice, safeguarding the financial interests of the Ugandan public.
Source: Monitor
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